CHAPTER 28
PURCHASING. Revised 12/14

§ 28-1.    Purchasing system adopted; purpose of Chapter

§ 28-5.    Designated Purchasing agent

§ 28-10.    Powers and duties

§ 28-15.    Bidding.

§ 28-20.    Public Works Projects. Revised 12/14

§ 28-25.    Purchasing process.

§ 28-26.    Bidder Protests.

§ 28-27.    Bidder Protest Procedures.

§ 28-30.    Contracts for professional services.

§ 28-35.    Purchases for Library.

§ 28-40.    Splitting Purchases Prohibited.

§ 28-45.    Inspection and testing.

§ 28-50.    Surplus supplies and equipment.

§ 28-55.    Conflicts of interest in contracts, etc., with City.

§ 28-60.    Interference with, misleading, etc., bidders prohibited.

§ 28-65.    Acceptance of gifts, etc., by City employees prohibited.

Article 2. Local Hiring for Public Works Projects

§ 28-70    Purpose

§ 28-71    Definitions

§ 28-72    Exceptions

§ 28-73    Requirements for Contractors Submitting Bids

§ 28-74    Requirements for Prospective Subcontractors

§ 28-75    Non-responsive Bids

§ 28-76    Required Documentation

§ 28-77    Forms Submitted Under Penalty of Perjury

§ 28-78    Disqualification

§ 28-79    City Attorney Prosecution

Sec. 28-1. Purchasing system adopted; purpose of Chapter.

In order to establish efficient procedures for public bidding, contracting for public works projects and for the purchase of equipment, supplies, materials, and services, to secure public works contracts and equipment, supplies, materials and services for the City at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is hereby adopted.

Sec. 28-5. Designated purchasing agent

For the purposes of this ordinance, the term “Purchasing Agent” shall mean and include the City Manager or his designated representative(s) for purchases of equipment, supplies, materials, services.

In the event one or more representatives are designated as City purchasing agents, those individuals shall be included in the City’s Conflict of Interest Code as persons who must file an annual statement of economic interest with the City Clerk.

Sec. 28-10. Powers and Duties.

The Purchasing Agent shall have the following powers and duties:

(a)    To purchase or contract for materials, supplies, services and equipment, as limited in this Chapter, required by any department;

(b)    To negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;

(c)    To act to procure the needed quality in supplies, materials, services and equipment at the least expense to the City;

(d)    To obtain as full and open competition as possible on all purchases;

(e)    To keep informed of current developments in the field of purchasing, prices, market conditions and new products;

(f)    To prescribe and maintain such forms as are reasonably necessary to the purchasing operation;

(g)    To supervise the inspection of all supplies, services, and equipment purchased to ensure conformance with the specifications.

Sec. 28-15. Bidding.

The purchase of equipment, supplies, materials, general services and professional services shall be by bid or Request for Proposal as set forth in Sections 28-20, 28-25, and 28-30 herein. Formal bidding shall be dispensed with in the following situations:

(a)    In the event of an emergency caused by fire, flood, earthquake, storm, or similar disaster that poses a serious threat to the public safety, the Mayor or City Manager may order the suspension of normal bidding or purchasing requirements for projects related to abatement of the impacts or effects of such emergency. The City Council shall, if possible, ratify such emergency suspension of procedures within seventy-two (72) hours and consider whether further suspension of procedures is required to abate the impacts of the emergency. (Ord. 3303 §1, 2002)

(b)    For the purchase of equipment, supplies, materials or services of a value less than that subject to the provisions of Section 28-25 (a) or for public works projects of a value less than that subject to the provisions of Section 28-20 (a) herein; (Ord. 3303 §1, 2002)

(c)    In the event the contract and/or purchase contemplated is capable of being performed as follows: By a sole provider such as a public utility or the holder of an exclusive patent or franchise; by another governmental agency; through purchasing contracts negotiated by another governmental agency utilizing acceptable bidding procedures; when purchasing used equipment. Such purchases are subject to fair, just and equitable contract conditions. The award of all such contracts valued at twenty-five-thousand dollars ($25,000) or more is subject to City Council approval. The twenty-five-thousand dollar ($25,000) limit set forth above shall be automatically increased by five-thousand dollars ($5,000) on July 1, 2005, and by the same amount each fifth year thereafter. (Ord. 3424 § 11, 2009; Ord. 3303 §1, 2002)

Sec. 28-20. Public Works Projects. Revised 12/14

(a)    Public Bidding - Formal bid and Contract Procedure

Contracts for public works projects valued at fifty-thousand dollars ($50,000) or more shall be by written bid and contract, in accordance with the provisions set forth in this chapter, or as required by law. The fifty-thousand dollar ($50,000) limit set forth above shall automatically be increased by five thousand dollars ($5,000) on July 1, 2005 and by the same amount each fifth year thereafter. The provisions of the Public Contracts Code shall not apply unless otherwise adopted by the City. Ord. 3303 §1, 2002

(b)    Local Hire Standards

Unless such provision would be excepted under Section 28-72 of this chapter, all City contracts for public works projects subject to the above-stated formal bidding requirements shall contain provisions for a good-faith effort to hire qualified individuals who are residents of the Monterey Bay Area, in accordance with the provisions set forth in article 2 of this chapter. Ord. 3254 § 1, 1999

(c)    Open Market Procedure

Contracts for public works projects estimated in value in excess at two-thousand-five-hundred dollars ($2,500) or more but less than fifty-thousand dollars ($50,000), as such amounts may be amended as set forth in (a) above and (d) below, may be made by the City in the open market. Open market contracts shall, unless infeasible, be based on at least three informal bids or quotes and shall be awarded to the lowest responsible bidder. Ord. 3303 §1, 2002

(d)    Purchases less than $2,500

Contracts for public works projects estimated in value to be less than two-thousand-five-hundred dollars ($2,500) may be let without informal bids or quotes, subject, however, to fair, just and equitable terms and conditions of purchase, and recognizing the need for fair competition in the conduct of such purchases. The two-thousand-five-hundred dollars ($2,500) limit set forth above shall be automatically increased by five-hundred dollars ($500) on July 1, 2005 and by the same amount each fifth year thereafter. Ord. 3303 §1, 2002

(e)    Prevailing Wages

Contracts for City-funded public works construction projects valued in excess of twenty-five thousand dollars ($25,000), and contracts for City-funded alteration, demolition, repair or maintenance projects valued in excess of fifteen thousand dollars ($15,000), shall require payment of prevailing wages in accordance with the requirements of the California Labor Code. (Ord. 3507 § 2, 2014)

Sec. 28-25. Purchasing Process.

(a)    Formal Bid Procedure

Purchases of supplies, materials, services (other than professional services), and equipment valued at twenty-five-thousand dollars ($25,000) or more shall be by written bid and contract pursuant to the procedure prescribed herein. The twenty-five-thousand dollar ($25,000) limit set forth above shall be automatically increased by five-thousand dollars ($5,000) on July 1, 2005 and by the same amount each fifth year thereafter. Ord. 3303 §1, 2002

1.    Notice inviting bids. Notices inviting bids and specifying the time and place of opening shall be published at least ten days prior to the opening of the bids. Notice shall be published at least once in a newspaper of general circulation within the City.

2.    Receipt and opening of bids. All bids shall be sealed, identified on the envelope, and submitted to the City at or before the time specified on the notice. At the time and place specified, the bids shall be publicly opened and read. Any bid received after commencement of bid opening shall be rejected and returned unopened.

3.    Bidders’ security. At the discretion of the City, each bid may be required to be accompanied by a bid deposit or bond equal to at least ten percent (10%) of the bid amount, as set forth in the bid specifications.

4.    Award of Bid. Except as otherwise provided herein, the City Council shall award the contract to the lowest responsible bidder whose bid complies with the specification. In determining responsibility, the City Council shall consider the known reliability, resources, experience, integrity, and the reputation for workmanship of the various bidders. The City Council may waive any informalities or minor irregularities in bids received. Compliance with bid specifications shall be determined by the City Council in the event of a challenge.

5.    Rejection of bids. The City Council may reject any and all bids presented, and may, in its discretion, re-advertise for other bids.

6.    Unacceptable bids or no bids received. After rejecting bids, the City Council may determine and declare by resolution that the equipment, supplies, materials or services may be more economically or satisfactorily purchased or secured in the open market and direct the purchase of such equipment, supplies, materials or securement of services on the open market by direct negotiations.

7.    Tie bids. If two or more low bids received are for the same total amount or unit price, quality and service being equal, the City may re-advertise for bids, draw lots or accept the one it chooses.

(b)    Informal Bid Procedure

1.    Purchase of supplies, materials, services and equipment estimated in value at three thousand dollars ($3,000) or more and thirty thousand dollars ($30,000) or less, as such amounts may be amended every five (5) years as set forth below, may be made by the City informally without observing the formal bidding procedures prescribed in subsection (a) of this section. Such purchases shall, unless infeasible, be based on at least three informal bids or quotes and shall be awarded to the lowest responsible bidder. The three thousand dollar ($3,000) and thirty thousand dollar ($30,000) limits shall be automatically increased by five hundred dollars ($500) and five thousand dollars ($5,000), respectively, on July 1, 2010, and by the same amount each fifth year thereafter.

2.    Purchases of vehicles, rolling stock and similar equipment estimated in value at five thousand dollars ($5,000) or more and fifty-five thousand dollars ($55,000) or less, as such amounts may be amended every five (5) years as set forth below, may be made by the City informally without observing the procedures prescribed in subsection (a) of this section. Such purchases shall, unless infeasible, be based on at least three informal bids or quotes and shall be awarded to the lowest responsible bidder. The five thousand dollar ($5,000) and fifty-five thousand dollar ($55,000) limits shall be automatically increased by five hundred dollars ($500) and five thousand dollars ($5,000), respectively, on July 1, 2010, and by the same amount each fifth year thereafter.

(c)    Purchases less than $2,500

Purchases of supplies, materials, services and equipment estimated in value to be less than two-thousand-five-hundred dollars ($2,500) may be made without informal bids or quotes, subject, however, to fair, just and equitable terms and conditions of purchase. The two-thousand-five-hundred dollars ($2,500) limit set forth above shall be automatically increased by five-hundred dollars ($500) on July 1, 2005, and by the same amount each fifth year thereafter. (Ord. 3424 § 11, 2009; Ord. 3303 §1, 2002)

Sec. 28-26 Bidder Protests.

Bid protest procedures are set forth in the City’s Purchasing Manual, Section 28-26. Any protest shall be accompanied by bid protest filing fee of ninety-five dollars ($95.00). Such protest fee is non-refundable except in the instance where protestor prevails in the protest, City engaged in a processing error, or the call for bid documents are ambiguous. (Ord. 3472 § 15, 2012)

Sec. 28-27 Bidder Protest Procedures.

The following procedures shall apply to bidder protest(s):

a.    Grounds for protest. Authority to protest shall be limited to bidding vendors. A written protest may be filed based on the following grounds:

i.    Failure of the City to apply correctly the standards of review, evaluation, or scoring of a bid or proposal as specified in the solicitation documents.

ii.    Such other grounds as would create a cause of action at law or in equity.

b.    Bidder protests must be submitted, in writing, prior to award of contract and within five (5) business days after the date aggrieved bidder knew or should have known of the facts giving rise to the bid protest award. Such protests may be filed immediately after the bid opening. Protests will be accepted in person or via mail, either delivery shall be to City of Monterey, Finance Administration, 735 Pacific Street, Suite A, Monterey, CA 93940, so long as accompanied by the bid protest filing fee as specified in Section 28-26. Once the bid protest package has been received, follow-up communications in reference to the bid protest may be made to the Finance Department by telephone, fax, or email.

The written formal protest must contain the following:

i.    Identification of the specific City Purchasing Code (Chapter 28 of this code) or other statutory or regulatory provision(s) that the buyer or department is alleged to have violated;

ii.    Description of each act alleged to have violated the statutory or regulatory provision(s) identified above;

iii.    A precise statement of the relevant facts that includes dates, timelines and involved parties, and all supporting documents. Supporting documentation not submitted within the five (5) business days described in subsection (b) of this section may not be reviewed;

iv.    An identification of the issue(s) that need to be resolved that support the protest;

v.    A statement of the form of relief requested.

c.    If a timely protest is filed, Finance Administration shall notify the involved department(s) and any further action related to the bidding process shall be suspended until a determination is made on the merits of the protest.

d.    Finance Administration will conduct an investigation, gather information, prepare documentation of its findings and make every effort to resolve the protest to the mutual satisfaction of all stakeholders. If the protest cannot be mutually resolved, Finance Administration will make a decision as to the protest and so inform the involved department(s). The department(s) or Finance Administration will then notify the protest bidder(s), in writing.

e.    The notice to the protester shall state the basis of bidder’s protest(s), the results of the investigation, findings, recommendation(s) and reasons for the action taken and delivered, in writing, to the protesting bidder(s).

f.    Bidders may appeal, in writing, to the City Manager within five (5) business days of receipt of the written notification. The City Manager or Acting City Manager shall have five (5) business days to make a decision which shall be final. (Ord. 3472 § 15, 2012)

Sec. 28-30. Contracts for Professional Services

Professional services are defined as those provided by a person or firm engaged in a profession based on a generally recognized special knowledge or skill, including, but not limited to, the professions of accountant, attorney, artist, architect, engineer, environmental consultant, dentist, physician, training or educational consultant, or surveyor, and whose services are considered distinct and unique to such a degree that bidding of such services would not be feasible.

(a)    Formal Contracts

Award of contracts for services of a professional nature valued at twenty-five-thousand dollars ($25,000) or more shall be subject to City Council approval pursuant to the procedure prescribed herein. The twenty-five-thousand dollars ($25,000) limit set forth above shall be automatically increased by five-thousand dollars ($5,000) on July 1, 2005 and by the same amount each fifth year thereafter. Ord. 3303 §1, 2002

1.    Request for Proposal. When selecting providers of professional services, Requests for Proposal shall be used when feasible. Requests for Proposal shall specify the deadline and place for submission, the nature of the services required, and the selection criteria to be used for awarding the contract. Ord. 3303 §1, 2002

2.    Award of Contract. Except as otherwise provided herein, the City Council shall award a contract based on firm qualifications, experience and responsiveness, in addition to any other criteria set forth in the Request for Proposal.

3.    Rejection of Proposals. The City Council may reject any and all proposals submitted and may, in its discretion, re-advertise for other proposals.

(b)    Informal Proposal

Contracts for professional services in excess of two-thousand-five-hundred dollars ($2,500) but not exceeding twenty-five-thousand dollars ($25,000), as such amounts may be amended in (a) above and (c) below, may be made by the City informally without observing the procedures prescribed in Section 28-30(a). Such contracts shall, unless infeasible, be based on at least three informal proposals and shall be awarded based on firm qualifications, experience and responsiveness, in addition to other appropriate criteria. Ord. 3303 §1, 2002

(c)    Contracts less than $2,500

Contracts estimated to be less than two-thousand-five-hundred dollars ($2,500) in cost may be let without informal proposals subject however, to fair, just and equitable contract terms and conditions. The two-thousand-five-hundred dollars ($2,500) limit set forth above shall be automatically increased by five-hundred dollars ($500) on July 1, 2005 and by the same amount each fifth year thereafter. Ord. 3303 §1, 2002

Sec. 28-35. Purchases for Library.

The Board of Library Trustees shall select, rent or purchase or otherwise acquire all books, magazines, periodicals, recordings, films, pictures, photographs, programs received through electronic media, documents or any other cultural items for circulation from or study in the Public Library pursuant to the procedures prescribed herein.

Sec. 28-40. Splitting Purchases Prohibited

No acquisition of equipment, materials, supplies, or contractual services from a single vendor or provider shall be accomplished by the issuance of several purchase orders for portions thereof.

Sec. 28-45. Inspection and testing.

The City shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The City shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

Sec. 28-50. Surplus supplies and equipment.

The City shall have authority to, in the most equitable manner, dispose of all supplies and equipment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment.

Sec. 28-55. Conflicts of interest in contracts, etc., with City.

In accordance with Government Code Section 1090, no contract for any purchase of goods, labor or service, or any sale of City property in which any officer or employee is or becomes interested shall be allowed, and the resulting contract or sale shall be void.

Sec. 28-60. Interference with, misleading, etc., bidders prohibited.

No officer or employee of the City shall aid or assist a bidder in securing a contract to furnish labor, materials or other supplies or favor one bidder over another, or give or withhold information from any bidder not given or withheld from all other bidders, or wilfully mislead any bidder in regard to the character of the materials or supplies of a quality inferior to that called for by the contract or knowingly certify to a greater amount of labor performed or material or supplies furnished than has, respectively, been performed or received.

Sec. 28-65. Acceptance of gifts, etc., by City employees prohibited.

No officer or employee of the City may accept, directly or indirectly, any gift, rebate, money, or anything else of value whatsoever from any person or entity if the gift, rebate, money, or item of value is intended as a reward or inducement for conducting business, placing orders with, or otherwise using the employee’s position to favor the contributor. Promotional items of nominal value, such as calendars, pens, balloons, etc., shall not constitute a gift if received as a non-personal item by the officer or employee, and the item is distributed to customers or potential customers routinely by the contributor.

ARTICLE 2.
Local Hiring for Public Works Projects

Sec. 28-70. Purpose.

The purpose of this article is to create a policy that encourages contractors who receive City public works contracts to hire residents of the Monterey Bay Area. Unless excepted under section 28-72 herein, all City contracts for public works subject to the formal bidding requirements set forth in section 28-20(A) of this chapter shall contain provisions pursuant to which the contractor promises to make a good faith effort to hire qualified individuals who are residents of the Monterey Bay Area in sufficient numbers so that no less than 50% of the contractor’s total construction work force, including any subcontractor work force, measured in labor work hours, is comprised of Monterey Bay Area residents. (Ord. 3254 §2, 1999)

Sec. 28-71. Definitions

Unless the context otherwise requires, the following definitions shall govern the construction of this article:

(a)    Contractor. Any person or entity, which, pursuant to a written agreement or purchase order, provides labor or materials on public works projects for the City.

(b)    Days. Means calendar days unless otherwise specified.

(c)    Qualified Individual. A person who is specially trained, skilled, and experienced in the work, trade, or craft specified in the portion of the public work of improvement to be performed or who is enrolled in a certified state or federally approved apprenticeship program in the applicable trade or who is a journey person in his or her applicable trade.

(d)    Monterey Bay Area. Means Monterey County, San Benito County and Santa Cruz County.

(e)    Public Works Project. A project of public works improvement which is let by contact pursuant to the formal bidding procedures set forth in section 28-20(A) of this code.

(f)    Resident of the Monterey Bay Area. An individual who is domiciled within the boundaries of the Monterey Bay Area immediately preceding the date of the bid advertisement by the City and who can verify his or her domicile upon request of the contractor or City by producing documentation such as rent/lease agreement, telephone and utility bills or payment bills, a valid California drivers license or identification card, and/or any other similar, reliable evidence that verifies that the individual is domiciled within the Monterey Bay Area.

(g)    Subcontractor. Any person or entity, which, pursuant to an agreement or purchase order with a City contractor or another subcontractor, participates in the provision of labor or materials on public works projects for the City.

Sec. 28-72. Exceptions

The provisions of this article shall not apply under the following circumstances:

(a)    Whenever a state or federal law or regulation applicable to a particular contract prohibits the provision of a local hire requirement; or

(b)    Whenever the City, in accordance with the requirements of this Code or state law, determines that the contract is necessary to respond to an emergency which endangers the public health, safety, or welfare.

(c)    Whenever the City determines that a suitable pool of persons providing specialized skills, such as marine-related pile drivers, does not exist locally for a specific public works project.

Whenever an exception is imposed, the basis of the exception shall be include din the staff report to the City Council.

Sec. 28-73. Requirements for Contractors Submitting Bids

(a)    A contractor who is submitting a formal bid to the City for a public works project must promise to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay Area in sufficient numbers so that no less than fifty percent (50%) of the contractor’s total construction work force, including any subcontractor work force, measured in labor work hours, is comprised of Monterey Bay Area residents.

(b)    A “good-faith” effort means the contractor will take the following or similar actions to recruit and maintain Monterey Bay Area residents as part of the construction workforce:

1.    Contact local recruitment sources to identify qualified individuals who are Monterey Bay Area residents;

2.    Advertise for qualified Monterey Bay Area residents in trade papers and newspapers of general circulation in the Area, unless time limits imposed by City do not permit such advertising.

3.    If portions of the work are to be performed by subcontractors, identify qualified subcontractors whose workforce includes Monterey Bay Area residents; and

4.    Develop a written plan to recruit Monterey Bay Area residents as part of the construction workforce.

(c)    Every bidder must complete and sign under penalty of perjury a Certification of Good-faith Effort to Hire Monterey Bay Area Residents, on the form provided in the City’s bid package, and submit said Certification with the sealed bid no later than the date and time of the bid opening. Bidder shall attach to the Certificate documentary evidence supporting bidder’s promise to meet or make a good-faith effort to meet the local hiring goal.

(d)    Contractor shall include in each and every subcontract relating to the project the requirement that the subcontractor promises to make a good faith effort to hire qualified individuals who are residents of the Monterey Bay Area. Contractor shall be responsible for subcontractor’s compliance under this article.

(e)    Prior to submitting bids, bidders shall ensure that any and all subcontractors listed in their bids are not disqualified at that time pursuant to section 28-78 herein. Prospective contractors may consult the list, available from the City Clerk, of contractors and subcontractors, if any, who are currently disqualified.

(f)    Contractors who have been disqualified pursuant to section 28-78 herein may not submit bids during the period of disqualification. Any bid received from a bidder who is currently disqualified will be returned to the bidder unopened.

Sec. 28-74. Requirements for Prospective Subcontractors

(a)    Any subcontractor for work, laborers or materialmen relating to a project subject to this article will be required, in his or her contract with the prime contractor, to promise to make a good-faith effort to hire qualified individuals who are residents of the Monterey Bay Area.

(b)    A “good-faith effort” means the subcontractor will take actions such as those required of contractors pursuant to section 28-73(b) above to recruit and maintain Monterey Bay Area residents as part of subcontractor’s workforce. Subcontractor shall maintain documentary evidence of such actions.

(c)    Subcontractors who have been disqualified pursuant to section 28-78 herein may not be listed in a prime contractor’s bid for a City public works project and may not submit bids during the period of disqualification.

Sec. 28-75. Non-responsive Bids

The City may declare a bid to be non-responsive under the provisions of this article for good cause including, but not limited to, the following circumstances:

(a)    If a bidder fails to complete and sign under penalty of perjury the Certification of Good-Faith Effort to Hire Monterey Bay Area residents and to submit said Certification with his or her sealed bid no later than the date and time of the bid opening; or

(b)    If a bidder fails to comply with the good-faith effort requirements set forth in section 28-73(b) herein; or

(c)    If a bidder or a subcontractor listed by the bidder has been disqualified pursuant to section 28-78 herein or any other disqualification action.

Section 28-76. Required Documentation

During the performance of the contract, the contractor shall keep an accurate record on a standardized form showing the name, place of residence, trade classification, hours employed, proof of qualified individual status, per diem wages and benefits of each person employed by the contractor on the specific public works project, including full-time, part-time, permanent and temporary employees. Contractor shall require any and all subcontractors on the project to maintain records of the same information for subcontractor’s work force on the project and shall require subcontractor to provide a copy of those records to contractor upon contractor’s request. Contractor shall make contractor’s and subcontractor’s records available to the City, upon request, within five working days.

Sec. 28-77. Forms Submitted Under Penalty of Perjury.

All forms required under this article shall be attested to as true as to the information set forth therein and shall be submitted under penalty of perjury.

Sec. 28-78. Disqualification.

If the City finds that a contractor to whom a City contract for public works has been awarded, or a subcontractor listed by contractor on a public works project, has failed to comply with the good-faith hiring provisions of Section 28-73(b) during the performance of the contract, the City may disqualify the contractor and/or subcontractor from bidding or being listed in any bid on any City contract for public works for a period of one (1) year from the date of the City’s disqualification for a period of three (3) years. The Finance Department shall keep a current list of all disqualified contractors and subcontractors on file. (Ord. 3472 § 16, 2012)

Sec. 28-79. City Attorney Prosecution

If the City Attorney has reasonable cause to believe that any contractor or subcontractor has knowingly committed any of the acts or omissions set forth in this article, the City Attorney may prosecute pursuant to the provisions of section 1-7 of this code.